Japanese firms plan bid for high-speed Brazil rail project: report

A consortium of Japanese firms led by Mitsui & Co. Ltd. (8031.TO) plans to make a pitch for a shinkansen system in a tender by the Brazilian government for a railway project, with the aim of introducing Japan's bullet train system for the first time outside Asia, sources close to the matter said Saturday, according to Kyodo News.

Brazil announced Friday a draft of the bidding procedure for its high-speed railway construction project in the southeastern part of the country, with tenders expected to be accepted next spring and the winning bid to be determined around May, Kyodo reported.

The only shinkansen system built outside Japan so far is that in Taiwan which began operating in 2007. Mitsui also headed a group of Japanese companies that built the system in Taiwan.

The Japanese consortium seeking the Brazilian project worth around Y4 trillion, including about Y1.75 trillion in construction costs, will also include firms such as Toshiba Corp. (6502.TO), Hitachi Ltd. (6501.TO) and Mitsubishi Heavy Industries Ltd. (7011.TO), and the Japan Railway group is also set to cooperate, Kyodo reported, citing the sources.

Toshiba would be in charge of the transportation system and Hitachi the train cars, while Mitsubishi Heavy would oversee the overall construction operation, the sources said, according to Kyodo.

The Brazilian project involves planned construction of a high-speed railway system over a 510-kilometer route connecting Rio de Janeiro and Campinas, an industrial city, via Sao Paulo in less than two hours.

Brazil wants to see the new system up and running in 2014 when the country hosts the World Cup soccer tournament.

Companies in European countries and South Korea have also expressed interest in taking part in the bidding with full backing from their respective governments, according to Kyodo.

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